Fast read: How we're rewarded
Executive remuneration policy is set by WPP's Compensation Committee and is governed by three guiding principles:
- Alignment to share owner interests
In 2007, the Compensation Committee addressed several key aspects of Group-wide compensation, including the need to balance employment costs with growth, maintaining appropriate levels of recognition and reward, and the impact of new and complex US tax rules on compensation.
The committee is mindful of the need to maintain competitive levels of compensation with a large element dependent on performance and comprising shares as well as cash, so as to align the interests of executives with those of share owners. This is achieved by making:
- Single-year performance awards delivered as restricted stock awards and vesting two years after the end of the one-year performance period.
- Similarly, at the parent company level, grants of Executive Share Awards, also vesting two years after the end of the one-year performance period.
- Awards of stock made on an annual basis to WPP Leaders, Partners and High Potential groups in the form of restricted stock which vest three years after grant.
- To those key executives (including executive directors) whose contributions transcend their day-to-day role, grants under the co-investment LEAP Plan resulting in the award of matching shares, dependent on performance, after a four- or five-year performance period.